Recent Sell – Seg Funds

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This is part of my annual sale in my employer-offered retirement matching plan. As part of the employment compensation package, I am encouraged to contribute to a group retirement plan, to which my employer matches 50% of the funds. The catch was that I had to choose from a pool of segregated funds offered by an insurance company. These funds come with high management fees but in order to not leave money on the table, I decided to make regular contributions. I originally documented it in this post.

Once a year, I am given a freebie to withdraw funds and move them to my other self-directed retirement accounts. My last such move was exactly a year ago in Jan 2017. I sold my positions in the following two funds. Going forward I will be repeating this move each January, so that my overall expenses fees remain low.

  • US Equity Index Seg Fund
  • International Equity Seg Fund

I will continue taking advantage of this benefit from my work and regular contributions into these funds will continue as usual on a monthly basis.

Full disclosure: Our full list of holdings are available here.

4 thoughts on “Recent Sell – Seg Funds

  1. Very intelligent money management R2R. Participate to get the company contribution then move out as soon as you can to lower your investment costs and access a larger universe of investment possibilities. Best of both worlds from my perspective. Tom

    • Thanks Tom. Definitely dont want to leave money on the table at work. And the plans are horrible — I cant believe the company is being sold such shitty products using seg funds. I can put that money to better use elsewhere

      R2R

  2. Nice strategy – certainly take whatever benefits you can get from work and make the best of them! Do others in the company share your same view on those plans? Or are not all employees as financially savvy?

    • Thanks Frankie. I dont talk to my co-workers about investing. I have only disclosed my blog to a handful of people at work…but from what I hear generally in the hallways, most people arent even aware or simply just dont care enough to take advantage of the matching and leave money on the table. Hope they learn.

      R2R

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